Short Term Loans

How to get a personal loan

Posted on 18 September 2024

If you’re looking to take out a personal loan but are confused about the process, you’re at the right place. Finding the right lender and getting approval may seem daunting, but with the right tips and tricks, you can get a quick personal loan within a few days. In this article, we’ll walk you through the steps to apply for a personal loan.

Credit24: quick and easy personal loans

How to apply for a personal loan: step by step

Here’s how to get approved for a loan:

1.    Do your investigation first

Before applying for a personal loan, you  should review your financial situation and the loan options available to you.

First, make sure you need to borrow at all.  Do you really need what you are intending to purchase with the loan?

Then  research different lenders, their interest rates, and the repayment terms to make an informed decision.

2.    Make sure you meet the criteria

Most lenders set eligibility criteria to apply for a personal loan in Australia. The most common requirements are:

  • You must be at least 18 years old.
  • You must be a permanent resident of Australia or hold Australian or New Zealand citizenship.
  • You must be employed and have a regular income source.
  • You must meet the minimum income requirements.
  • You must have a solid credit history and a good credit rating to prove your creditworthiness.
  • You must not be undergoing any bankruptcy process.

3.    Have  the information you’ll need

Before you apply for a personal loan, make sure to gather all the necessary documents. Most lenders require:

  • Identification proof such as your passport or driver’s license.
  • Income proof such as tax credits and salary slips.
  • Bank statements to show your financial stability.
  • Credit history record to show your creditworthiness.

4.    Choose your amount wisely

You need to carefully consider how much money you need to borrow. Make sure it aligns with your financial goals. Borrowing more than what you need can lead to financial instability and increase your debts.

5.    Decide how you want to apply

There are many ways to apply for a personal loan, including:

  • Online application: You can apply directly through the lender’s website.
  • In-person application: You can visit the lender’s physical location like your local bank branch to apply in person.

6.    Review and sign it

Once you’ve prepared  your application, it’s time to read the loan terms. If you agree to the terms, you can sign the loan agreement. If not, you can consider alternative lending options that fit your needs.

7.    Get funded and start repayments

Once you’ve been approved for the loan, the amount will be transferred to your account. You will then need to start making repayments as per the loan terms.

Credit24: quick and easy personal loans

How to get approved for a loan: best tips

Here are some tips that will help you get your loan application approved:

  • Build a good account history.
  • Keep a good credit score.
  • Keep a good saving record.
  • Do your research and pay attention to all the associated fees beyond interest rates like application fees, monthly fees, establishment fees, servicing fees, early exit, early repayment, insurance, withdrawal fees, etc.
  • Make sure there are provisions to repay earlier without any penalty.
  • Decide which loan between a secured and unsecured loan suits you better
  • Decide if you should take a variable loan or a fixed loan.

What credit score do I need for a personal loan in Australia?

While there is no minimum credit score for personal loans that all lenders agree on, a bad credit rating can significantly reduce your chances of getting a personal loan in Australia. Australian credit rating agencies like Experian usually consider a credit score between 625 and 699² as good to average credit score. If your score is below this range, some lenders still consider your loan application, but they may charge you a higher interest rate or require some item personal property, often the item purchased by the loan as security.

Any score above 800 is considered excellent, so you’ll easily get a good deal from lenders. Any credit score between 800 and 1000 puts you in a better position to get a larger loan amount at a lower interest rate.

The tip is to use a comprehensive credit reporting lender so that your repayment history can increase your credit rating for the next time you apply for a loan.

Once you’ve applied, how long does it take to get approved?

The total time to get approval for a personal loan varies depending on the lender. Typically, you can expect lenders to decide within a few minutes to a few days. Many lenders approve within at least 48 hours and you can expect to receive your funds no later than the following business day. Make sure you have all the documents ready to avoid any further delay.

What if the loan is not approved?

If your loan application is rejected, find out the reason. Use the feedback to improve your financial habits and credit history for your next application. Avoid making multiple applications back-to-back, as this can hurt your credit score. You can also check your credit report for free to ensure it’s correct. If there are any errors, rectify them immediately.

If you’re still struggling to borrow money, it’s a good idea to consult a financial counsellor or advisor who can help you with your money problems.³ Financial counselling is offered by many non-profit organisations as a free and confidential service in Australia.

How to get a quick personal loan with Credit24

Credit24 offers quick and easy personal loans with flexible repayment terms. The simple online application process and competitive interest rates make it a good option if you’re thinking about taking out a loan. Here’s a step-by-step process to apply for a personal loan through Credit24:

  1. Make sure you have all the required documents ready.
  2. Apply online in 10 minutes.
  3. If approved, the amount is credited immediately (within 60 seconds*).

There are several benefits of getting a personal loan with Credit24. Here are a few:

  • Get loans between $500 to $10,000
  • The application process is fast, easy and 100% online.
  • Typically, you get a response to your application almost immediately.
  • You get flexible repayment options and you can choose between 6 and 36 months to pay back the loan with interest.
  • The repayments are fixed upfront so you can always plan ahead and budget your finances accordingly.
  • If approved, you can get a same-day loan payout as the money is usually paid in as little as 60 seconds*.

Credit24: quick and easy personal loans

Disclaimer:
IPF Digital Australia Pty Ltd, trading as Credit24, ABN 59 130 894 405. Australian Credit Licence 422839. The information in this article is of general nature and does not take into consideration your objectives, financial situation or needs. Lending criteria, fees and charges apply. For more information about our products, eligibility criteria and terms and conditions, please visit www.credit24.com.au.

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